Govt proposes repealing Indian Stamp Act, seeks public input on draft Bill
- The government has proposed repealing the Indian Stamp Act, 1899 and bringing in a new legislation for the stamp duty regime in the country.
- The Department of Revenue under the Ministry of Finance has invited suggestions on the draft ‘Indian Stamp Bill, 2023’ from the public within a period of 30 days.
Key Highlights
- “The Department of Revenue, Ministry of Finance, Government of India, has prepared a draft ‘Indian Stamp Bill, 2023’ to align it with the modern stamp duty regime.
- Once enacted, the Bill shall replace the Indian Stamp Act, 1899
- The Indian Stamp Act, 1899 lays down the legal provisions for tax levied in the form of stamps on instruments recording transactions.
- Stamp duties are levied by the central government, but within the states are collected and appropriated by the concerned states in terms of provisions of Article 268 of the Constitution.
- The stamp duties on documents specified in entry 91 of the union list of the Seventh Schedule including
- Bills of exchange, cheques, promissory notes, bills of lading, letters of credit, policies of insurance, transfer of shares, debentures, proxies and receipts) are levied by the Union.
- Other stamp duties on documents are levied and collected by the states.
- The Indian Stamp Act, 1899, a pre-Constitution Act, has been amended from time to time to enable a more modern stamp duty regime, the ministry said.
Prelims Takeaway
- Seventh Schedule
- ‘Indian Stamp Bill, 2023